Question: What is the second step in determining the overhead allocation rate? Sum all variable overhead associated with each allocation base. Select the cost - allocation

What is the second step in determining the overhead allocation rate?
Sum all variable overhead associated with each allocation base.
Select the cost-allocation bases for allocating variable overhead costs and estimate the quantity of the bases.
Divide the total variable overhead by the standard amount of the allocation base to calculate the variable overhead rate per unit.
Multiply the total fixed overhead rate by the standard amount of the allocation base to calculate the variable overhead rate per unit.

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